General Growth Properties (GGP)

darkflame (94.08) Submitted: 5/15/07 4:45 AM : Start Price: $58.07 GGP Score: -49.93

Recently, in May 2007, the Chief Finantial Officer bought some hundreds of thousands of shares at $62.8 each, making him own a total of 7,221,137 shares!

Insiders own 11% of the whole company.

The company operates in the Real Estate business and is highly leveraged, it owns more than it's total market cap, but that's not that much bad news, a small increase of property value might skyrocket the market cap. Joel Greenblatt has described this technique for real estate firms in one of his books, check it out and you will be knowing the beautifull logic behind my outperform call.

Forward P/E is 17. It's not exactly a value pick just based on that, but 17 sounds right and the CFO might be expecting something that we don't know about and that's why probably he's buying so much stock.

I love insider buying! Here be, no dragons.

About GGP:

General Growth Properties, Inc. operates as a real estate investment trust in the United States. The company operates through two segments: Retail and Other, and Master Planned Communities. The Retail and Other segment engages in the ownership, operation, management, leasing, acquisition, development, expansion, and financing of rental properties. Its properties include retail centers, office and industrial buildings, and mixed-use and other properties. This segment also has ownership interest in joint ventures, which own four retail properties in Brazil and one retail property under construction in Costa Rica. The Master Planned Communities segment engages in the development and sale of land in and around Columbia, Maryland; Summerlin, Nevada; and Houston, Texas for residential, commercial, and other uses primarily in master planned communities. As of December 31, 2005, the company had ownership interest in and/or management responsibility for a portfolio of over 200 regional shopping malls in 44 states. As of the above date the communities, including land previously sold or not saleable, totaled over 70,000 acres. The company has elected to be taxed as a REIT and it would not be subject to federal income tax, provided it distributes at least 90% of its taxable income to its shareholders. The company was co-founded by Martin Bucksbaum and Matthew Bucksbaum in 1954. General Growth Properties is headquartered in Chicago, Illinois.

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